Oil Prices Plummet After Trump Calls Off Iran Strike

Oil prices plummeted on Monday after US President Donald Trump announced he was calling off a planned strike on Iran and would instead begin new talks with Tehran.

The decision led to Brent crude sinking as much as 7.3% to $81.55 a barrel before recovering some ground, while West Texas Intermediate dropped 4.6% to $80.76.

Trump said he made the decision after being urged by West Asian allies, including Saudi Arabia, to pursue a negotiated deal instead of military action.

The OPEC+ output hike added further pressure on prices, with key members approving the latest small increase to output quotas.

Risks to shipping through the Strait of Hormuz remain high, despite the pullback in oil prices.